The Committee on Commissions, Statutory Authorities & State Enterprises (COSASE) has appealed to the Ministry of Finance, Planning and Economic Development to allocate funds to Uganda National Bureau of Standards (UNBS) for destroying substandard goods in the market.
The committee in its report presented by Hon. Gerald Nangoli (NRM, Elgon North County) on Wednesday, 18 October 2023 observed that UNBS did not have a particular budget line for destroying substandard commodities that come into the country and those seized from market surveillance activities.
“It was noted that the warehouses of the Bureau are filled with substandard products that were not yet destroyed,” Nangoli said.
The committee report contains an investigation into the Auditor General’s report on the financial statements of UNBS for the Financial Year ended 30 June 2022.
Nangoli said that whereas the responsibility of funding the process of disposal of substandard goods lies with those found in possession of non-conforming items, there is a challenge regarding enforcement, given that the process has to be determined by court, and takes a long time.
“As a result, many of the substandard items have to be kept in the stores for a long time as the court process is ongoing,” Nangoli said.
He said there is need to provide funding to the Bureau to cater for disposal costs of impounded and abandoned commodities.
The committee also noted that understaffing, especially at the border points could exacerbate the risk of substandard goods entering the Ugandan market.
The Auditor General in his report had noted that the Bureau had staff presence at only 27 out of the 170 border entry points. This was attributed to understaffing at the Bureau resulting from financial shortfalls.
Section 3 (1) of the UNBS Act states the functions of the Bureau which among others shall include providing for the testing of locally manufactured or imported commodities to determine whether the commodities conform to the standard specification declared under the Act.
Pakwach District Woman Representative, Hon. Jane Pacutho urged the House to financially support UNBS during the budget process to enhance the inspection and stamping of goods at the border points, which she said is wanting.
Kole North County Member of Parliament, Hon. Samuel Opio differed with the committee’s recommendation to provide funds to UNBS to destroy substandard goods saying it is not sustainable.
“In many jurisdictions when substandard goods are impounded, you are fined and have to pay for the cost of destruction otherwise it will not be sustainable to provide a budget for destruction of substandard goods…Why don’t we recommend a review of legal regime such that fines cater for the cost of destruction?” he said.
State Minister for Trade, Hon. Harriet Ntabazi said several trucks are stranded at Elegu Border due to lack of materials and testing equipment used by UNBS.
“The challenge is not the ministry or the agency but there is no money. All these millers and exporters pay money but it goes to the Consolidated Fund and UNBS can’t access it,” Ntabazi said.
